Mumbai, Oct 20: Gold prices rose to a three-month high on Friday and were headed for a second consecutive weekly gain, on the back of a safe haven demand due to the Middle East conflict and expectations that the US Federal Reserve was likely to pause rate hikes.
Gold prices crossed the Rs 60,000 per 10 gm on the Multi Commodity Exchange (MCX) on Friday and were hovering at Rs 60,313 in afternoon trade. In the international market, prices were around $1,976.40 per troy ounce.
Gold futures, maturing on December 5, 2023, stood at Rs 60,615 per 10 grams on the MCX, after recording a marginal hike of Rs 272.
As the Israel-Hamas war intensifies, there’s a fear that it could escalate into a broader geopolitical crisis involving the US and Iran. With Israel preparing for a ground attack on Gaza and the US sending two aircraft carriers to the region, these fears have been exacerbated. Any escalation in the hostilities could disrupt oil supplies and trigger economic uncertainty worldwide.